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Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
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Monday, March 7, 2016

January 2016 International Trade (Softwood Lumber)

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Softwood lumber exports retreated (-4 MMBF or 2.8%) in January while imports advanced (+71 MMBF or 6.0%). Exports were 11 MMBF (9.4%) above year-earlier levels; imports were 278 MMBF (28.4%) higher. As a result, the year-over-year (YoY) net export deficit was 267 MMBF (30.9%) larger. The average net export deficit for the 12 months ending January 2016 was 14.5% higher than the average of the same months a year earlier (the “YoY MA(12) % Chng” series shown in the graph above). 
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North America was the primary destination for U.S. softwood lumber exports in January (41.0%, of which Canada: 22.6%; Mexico: 18.4%). Asia (especially China: 19.1%) placed a close second, with 33.9%. Year-to-date (YTD) exports to China were up 62.9% relative to the same months in 2015. Meanwhile, Canada was the source of nearly all (95.1%) softwood lumber imports into the United States. Overall, YTD exports were up 9.4% compared to 2015, while imports were up 28.4%. 
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U.S. softwood lumber export activity through West Coast customs districts tapered off slightly in relation to the other districts during January (to 37.2% of the U.S. total, from 42.4% in December); Seattle maintained its dominance as the most active export district (21.0% of the U.S. total), leading second-place Mobile, AL (14.5%). At the same time, Great Lakes customs districts handled 67.0% of the softwood lumber imports (especially Duluth, MN with 26.9%) coming into the United States. 
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Southern yellow pine comprised 31.4% of all softwood lumber exports in January, followed by Douglas-fir with 17.6%. Southern pine exports were up 32.9% YTD relative to 2015, while Douglas-fir exports were up 5.4%.
The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.

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